Corporate Greed Strangling Job Creation: New Report

  • Posted by a hidden member.
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    Dec 07, 2011 12:09 AM GMT
    So the "job creators" are going with greed and short term profits instead of investment, job creations and long term profits.

    This should put the lie to the silly idea that regulations or taxes are inhibiting job creation.

    Dan FroomkinWASHINGTON -- Corporate America is sitting right on top of the solution to the nation's employment crisis, according to a new report from a group of University of Massachusetts economists.

    If America's largest banks and non-financial companies would just loosen their death-grip on a chunk of the $3.6 trillion in cash they're hoarding and move it into productive investments instead, the report estimates that about 19 million jobs would be created in the next three years, lowering the unemployment rate to under 5 percent.


    "There is no reason that the U.S. needs to remain stuck in a long-term unemployment crisis," Robert Pollin, lead author of the report and co-director of the Political Economy Research Institute, said in a statement accompanying the report's release Tuesday.

    "Getting the banks and corporations to move their hoards into productive investments and job creation requires carrots and sticks -- policies such as a new round of government spending stimulus as well as taxes on the banks' excess reserves -- that can both strengthen overall market demand and unlock credit markets for small businesses," Pollin said.

    Even as the nation continues to confront massive unemployment, the nation's biggest companies have been hoarding cash. Banks have been able to borrow the money essentially for free from the Federal Reserve, so why not? In fact, according to the Federal Reserve (Table L.109, line 2icon_cool.gif, banks are sitting on $1.6 trillion in reserves -- about 8,000 times the $20 billion they held in 2007.

    Meanwhile, non-financial companies are keeping their profits liquid, rather than plowing them back into investments, to the tune of about $2 trillion.

    Together, that amounts to almost a quarter of the U.S. gross domestic product.

    Pollin and his colleagues figured that even accounting for a massive safety cushion, at least $1.4 trillion of those reserves should be considered excess.

    Meanwhile, the report notes, small business are having a hard time getting anyone to lend them money.

    The report concludes that investing the $1.4 trillion in private businesses would generate an enormous surge in employment. It recommends that the money in particular be channeled toward "small businesses that face larger than normal credit constraints; more labor intensive businesses; and businesses that generate large social as well as private benefits."
  • Posted by a hidden member.
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    Dec 07, 2011 12:26 AM GMT
    southbeach1500 saidDon't re-elect Obama and you'll see all those "problems" go away almost instantly.


    Right... Because Obama has been SO awful to business with their record profits... icon_rolleyes.gif

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    Dec 07, 2011 12:44 AM GMT
    southbeach1500 said
    Christian73 said
    southbeach1500 saidDon't re-elect Obama and you'll see all those "problems" go away almost instantly.


    Right... Because Obama has been SO awful to business with their record profits... icon_rolleyes.gif



    Yeah, despite Obama's meddling... Imagine how much better things would have been without him!


    Explain how he's made them worse.
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    Dec 07, 2011 12:48 AM GMT
    southbeach1500 said
    DoomsDayAlpaca said
    southbeach1500 said
    Christian73 said
    southbeach1500 saidDon't re-elect Obama and you'll see all those "problems" go away almost instantly.


    Right... Because Obama has been SO awful to business with their record profits... icon_rolleyes.gif



    Yeah, despite Obama's meddling... Imagine how much better things would have been without him!


    Explain how he's made them worse.


    Look at your paycheck (if you have one).


    Erm..you mean the fact that I make more money than before Obama was elected?
  • KissTheSky

    Posts: 1981

    Dec 07, 2011 1:45 AM GMT
    Great article, thanks for posting it!
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    Dec 07, 2011 1:49 AM GMT
    southbeach1500 said
    DoomsDayAlpaca said
    southbeach1500 said
    Christian73 said
    southbeach1500 saidDon't re-elect Obama and you'll see all those "problems" go away almost instantly.


    Right... Because Obama has been SO awful to business with their record profits... icon_rolleyes.gif



    Yeah, despite Obama's meddling... Imagine how much better things would have been without him!


    Explain how he's made them worse.


    Look at your paycheck (if you have one).

    Look at how many people are on food stamps.

    Look at how many people are out of work.

    Look at how many people have given up looking for work.




    We need a president who will stop threatening higher taxes on corporations, then the extra cash will be used for investment in labor, technology, etc.

    Why is it that liberals cannot stand it when corporations have lots of cash? As an investor in the stock market I love it when corporations have excess cash. Companies that have positive cash flow are the companies to invest in.



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    Dec 07, 2011 2:16 AM GMT
    CHRISTOPHER34 said
    southbeach1500 said
    DoomsDayAlpaca said
    southbeach1500 said
    Christian73 said
    southbeach1500 saidDon't re-elect Obama and you'll see all those "problems" go away almost instantly.


    Right... Because Obama has been SO awful to business with their record profits... icon_rolleyes.gif



    Yeah, despite Obama's meddling... Imagine how much better things would have been without him!


    Explain how he's made them worse.


    Look at your paycheck (if you have one).

    Look at how many people are on food stamps.

    Look at how many people are out of work.

    Look at how many people have given up looking for work.




    We need a president who will stop threatening higher taxes on corporations, then the extra cash will be used for investment in labor, technology, etc.

    Why is it that liberals cannot stand it when corporations have lots of cash? As an investor in the stock market I love it when corporations have excess cash. Companies that have positive cash flow are the companies to invest in.


    So you're greedy, stupid and unpatriotic? I thought only SB had the trifecta. Got it!
  • rnch

    Posts: 11525

    Dec 07, 2011 11:02 AM GMT
    southbeach jane = christopher34



    icon_idea.gif
  • GQjock

    Posts: 11649

    Dec 07, 2011 11:07 AM GMT
    southbeach1500 saidDon't re-elect Obama and you'll see all those "problems" go away almost instantly.


    Like they did Before Obama? icon_rolleyes.gif
  • JP85257

    Posts: 3284

    Dec 07, 2011 3:58 PM GMT
    Theyre sitting on it because theyre unsure of what their future taxes and regs are going to bed.

    Its not corporate greed I say...Its sensibility.
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    Dec 08, 2011 1:52 PM GMT
    southbeach1500 said
    DoomsDayAlpaca said
    southbeach1500 said
    DoomsDayAlpaca said
    southbeach1500 said
    Christian73 said
    southbeach1500 saidDon't re-elect Obama and you'll see all those "problems" go away almost instantly.


    Right... Because Obama has been SO awful to business with their record profits... icon_rolleyes.gif



    Yeah, despite Obama's meddling... Imagine how much better things would have been without him!


    Explain how he's made them worse.


    Look at your paycheck (if you have one).


    Erm..you mean the fact that I make more money than before Obama was elected?




    Glad that you have a paycheck.

    Also, given the fact that you weren't in the full-time employment workforce prior to the Obama wrecking ball being unleashed, yes, I would hope you are making more money now.


    Oh hey, you know jack shit about me or my life and just made yourself look like an idiot.
  • Posted by a hidden member.
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    Dec 08, 2011 3:56 PM GMT
    This is a confidence issue, not a greed issue. The business world has no confidence in this administration.
  • Posted by a hidden member.
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    Dec 08, 2011 4:14 PM GMT
    mocktwinkie saidThis is a confidence issue, not a greed issue. The business world has no confidence in this administration.


    Thanks for sharing that thoroughly debunked talking point.

    Multiple studies, surveys and polls have repeatedly shown that the primary obstacle to hiring and investment is a lack of demand caused by shrinkage of the middle class, a rise in poverty, lack of disposable income among the middle class and high unemployment.
  • Posted by a hidden member.
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    Dec 08, 2011 7:17 PM GMT
    Christian73 said
    mocktwinkie saidThis is a confidence issue, not a greed issue. The business world has no confidence in this administration.


    Thanks for sharing that thoroughly debunked talking point.

    Multiple studies, surveys and polls have repeatedly shown that the primary obstacle to hiring and investment is a lack of demand caused by shrinkage of the middle class, a rise in poverty, lack of disposable income among the middle class and high unemployment.



    HAHAHAHAHAHAHAHAHAHAHA!

    This is why we need to do what Pelosi says, she knows all about getting the economy going. See video below.

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    Dec 08, 2011 7:28 PM GMT
    CHRISTOPHER34 said
    Christian73 said
    mocktwinkie saidThis is a confidence issue, not a greed issue. The business world has no confidence in this administration.


    Thanks for sharing that thoroughly debunked talking point.

    Multiple studies, surveys and polls have repeatedly shown that the primary obstacle to hiring and investment is a lack of demand caused by shrinkage of the middle class, a rise in poverty, lack of disposable income among the middle class and high unemployment.



    HAHAHAHAHAHAHAHAHAHAHA!

    This is why we need to do what Pelosi says, she knows all about getting the economy going. See video below.


    Listen, if you're going to create multiple fictional "sock puppet" accounts, you could at least offer something substantive in your posts. I'm not watching any stupid videos with no basis in reality cobbled together by a bunch of unemployed right-wing douche bags.
  • Posted by a hidden member.
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    Dec 08, 2011 7:34 PM GMT
    Christian73 said
    CHRISTOPHER34 said
    Christian73 said
    mocktwinkie saidThis is a confidence issue, not a greed issue. The business world has no confidence in this administration.


    Thanks for sharing that thoroughly debunked talking point.

    Multiple studies, surveys and polls have repeatedly shown that the primary obstacle to hiring and investment is a lack of demand caused by shrinkage of the middle class, a rise in poverty, lack of disposable income among the middle class and high unemployment.



    HAHAHAHAHAHAHAHAHAHAHA!

    This is why we need to do what Pelosi says, she knows all about getting the economy going. See video below.


    Listen, if you're going to create multiple fictional "sock puppet" accounts, you could at least offer something substantive in your posts. I'm not watching any stupid videos with no basis in reality cobbled together by a bunch of unemployed right-wing douche bags.



    HAHAHAHAHAHAHAHAHAHA!!

    If I'm a sock puppet then you should be reporting me to the Site Administrator. This post is just like all your others, ignoring all facts. LOL, of course thats what liberals do and the video says everything that you have been advocating. You should be proud to watch it.



  • Posted by a hidden member.
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    Dec 08, 2011 7:47 PM GMT
    CHRISTOPHER34 said
    HAHAHAHAHAHAHAHAHAHA!!

    If I'm a sock puppet then you should be reporting me to the Site Administrator. This post is just like all your others, ignoring all facts. LOL, of course thats what liberals do and the video says everything that you have been advocating. You should be proud to watch it.


    Why report your when it's so much more amusing to watch you make a fool of yourself on a near daily basis?

    And intellectually, all you do is continually bring a knife to a gun fight. It's alternating sad and hilarious.
  • Posted by a hidden member.
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    Dec 08, 2011 8:01 PM GMT
    Christian73 said
    CHRISTOPHER34 said
    HAHAHAHAHAHAHAHAHAHA!!

    If I'm a sock puppet then you should be reporting me to the Site Administrator. This post is just like all your others, ignoring all facts. LOL, of course thats what liberals do and the video says everything that you have been advocating. You should be proud to watch it.


    Why report your when it's so much more amusing to watch you make a fool of yourself on a near daily basis?

    And intellectually, all you do is continually bring a knife to a gun fight. It's alternating sad and hilarious.



    I'm going to act like a stuck up liberal elitist right now. Learn how to write a sentence, its "you" not "your".
  • Posted by a hidden member.
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    Dec 08, 2011 8:13 PM GMT
    Why would Republican bankers do anything to stimulate the economy before the 2012 General Election?

    Commercial money center banks are anathema to small business and should be highly regulated and heavily penalized if they do not meet lending quotas to locally owned small businesses and workforce development programs.
  • no1timehookup...

    Posts: 208

    Dec 09, 2011 12:37 AM GMT
    southbeach1500 said
    DoomsDayAlpaca said
    southbeach1500 said
    Christian73 said
    southbeach1500 saidDon't re-elect Obama and you'll see all those "problems" go away almost instantly.


    Right... Because Obama has been SO awful to business with their record profits... icon_rolleyes.gif



    Yeah, despite Obama's meddling... Imagine how much better things would have been without him!


    Explain how he's made them worse.


    Look at your paycheck (if you have one).

    Look at how many people are on food stamps.

    Look at how many people are out of work.

    Look at how many people have given up looking for work.



    And this is still a result of the Bush years, which may never be erased..
  • no1timehookup...

    Posts: 208

    Dec 09, 2011 12:45 AM GMT
    CHRISTOPHER34 said
    southbeach1500 said
    DoomsDayAlpaca said
    southbeach1500 said
    Christian73 said
    southbeach1500 saidDon't re-elect Obama and you'll see all those "problems" go away almost instantly.


    Right... Because Obama has been SO awful to business with their record profits... icon_rolleyes.gif



    Yeah, despite Obama's meddling... Imagine how much better things would have been without him!


    Explain how he's made them worse.


    Look at your paycheck (if you have one).

    Look at how many people are on food stamps.

    Look at how many people are out of work.

    Look at how many people have given up looking for work.




    We need a president who will stop threatening higher taxes on corporations, then the extra cash will be used for investment in labor, technology, etc.

    Why is it that liberals cannot stand it when corporations have lots of cash? As an investor in the stock market I love it when corporations have excess cash. Companies that have positive cash flow are the companies to invest in.






    Why is it that you repugs think corporate welfare is the answer? They are still paying less taxes, My my my, where in the hell are these jobs? Hell lets even reek more out of the poor and middle class and give it to the rich so they can create all these jobs for products and services that no one can afford, great idea.. Even better, lets make sure we give the CEO of Wally World another BIG tax cut so they can open more stores and hire more incumbents that don't even know where the electronics department is located..
  • JP85257

    Posts: 3284

    Dec 09, 2011 4:00 AM GMT
    Christian73 said
    mocktwinkie saidThis is a confidence issue, not a greed issue. The business world has no confidence in this administration.


    Thanks for sharing that thoroughly debunked talking point.

    Multiple studies, surveys and polls have repeatedly shown that the primary obstacle to hiring and investment is a lack of demand caused by shrinkage of the middle class, a rise in poverty, lack of disposable income among the middle class and high unemployment.


    I will finish your statement.

    ........Because of the Obama Administration, its regulations and policies.
  • Posted by a hidden member.
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    Dec 09, 2011 4:41 AM GMT
    JP85257 said
    Christian73 said
    mocktwinkie saidThis is a confidence issue, not a greed issue. The business world has no confidence in this administration.


    Thanks for sharing that thoroughly debunked talking point.

    Multiple studies, surveys and polls have repeatedly shown that the primary obstacle to hiring and investment is a lack of demand caused by shrinkage of the middle class, a rise in poverty, lack of disposable income among the middle class and high unemployment.


    I will finish your statement.

    ........Because of the Obama Administration, its regulations and policies.


    Unfortunately, for you, no.
  • TrentGrad

    Posts: 1541

    Dec 09, 2011 12:28 PM GMT
    JP85257 said
    Christian73 said
    mocktwinkie saidThis is a confidence issue, not a greed issue. The business world has no confidence in this administration.


    Thanks for sharing that thoroughly debunked talking point.

    Multiple studies, surveys and polls have repeatedly shown that the primary obstacle to hiring and investment is a lack of demand caused by shrinkage of the middle class, a rise in poverty, lack of disposable income among the middle class and high unemployment.


    I will finish your statement.

    ........Because of the Obama Administration, its regulations and policies.


    Congratulations...that's one of the most ridiculous statements a conservative has ever uttered on here.

    Maybe take a little time off of hating on Obama, and actually do the research: the war on the Middle class generally is thought to have started with Ronald Reagan.

    Of course in fairness to Republicans, they aren't the only ones guilty of letting the middle class shrink: the Democrats under Clinton, for instance, did nothing to support the unions that protect good paying jobs, or reign in trade agreements that allowed companies to undercut American labor by outsourcing to third world countries. Indeed, it's kind of ironic...the US trade imbalance is so extreme not because American consumers and companies like foreign goods...it's so extreme because American manufacturing decided to pack it up and instead hire third world factories to produce THEIR goods so that they could make a higher profit margin!

    Increasingly, as Bill Maher has pointed out quite often, the USA doesn't make anything for itself...it's companies are content to ship innovation overseas so that the wealthy minority can make that much more by exploiting cheap quasi-slave labor!

    Christian's right: it is the height of treachery...because ultimately since the subprime calamity, the middle class and poor don't have money to borrow to keep the economy humming: as a result, you're going to see American companies increasingly divest themselves from the American economy, and throw their money into China, Brazil, India, Indonesia, Russia and a myriad of other nations where they think they can make a quick buck!

    They profitted from the hegemon when it was healthy, and they'll bail when the hegemon slackens...but not before taking everything they can first!

    Seems like for the wealthy and the right wing, devotion to the USA is of less importance than devotion to capitalism!